Michelle earns $60,000 a year and wants to buy her first home. Using salary sacrifice, she contributes $10,000 of pre-tax income into her super account each year, increasing her balance by $8,500 a year (after the 15% contributions tax). After three years, she can withdraw $26,449 she has saved, including expected investment earnings.
Her withdrawal is taxed at her marginal rate (including Medicare levy), less a 30% offset, leaving her with $25,259 that she can use for her house.
Michelle has saved around $5,840 more for her deposit by utilising the First Home Super Saver Scheme than if she saved in a standard deposit account.
- Income earners are in the 34.5% marginal tax bracket. This rate includes the Medicare levy.
- All numbers presented are in real terms, in today’s dollars (2023).
- Contributions and the related asset fee happens midyear.
- The cash rate is based on a short term rate of 3.10% over the next 5 years (2023-2028).
- The only fee charged is the asset-based fee, the member fee has not been included.
- Member contributions are invested in the MySuper Lifecycle.
- Member’s age is 30.